Understanding How Your WIP Schedule Affects Your Company
If you don’t always quite get what your CPA is talking about when it comes time to discuss your Work-In-Progress (WIP) schedule, you’re not alone. Many construction contractors are hesitant to dig deep into the subject, but those that do have access to a powerful tool for assessing project profitability. The basic premise of the WIP schedule…
How Underwriters Use a WIP Report
A quick glance at the surety credit industry shows what looks like mixed messages. On one hand, some surety underwriters at capacity are responding unfavorably to their existing clients’ balance sheets and suggesting they look to another surety credit provider. On the other hand, some surety companies with excess capacity are taking on struggling companies…
Whip Your WIP Report into Shape
Project profitability is behind expectation, and your surety doesn’t seem to have the same confidence in you as before – what’s the issue here? Chances are, you aren’t immediately aware of what the issue is. You’ll need to examine your Work-In-Progress (WIP) report to determine what conclusions the surety underwriter is coming to. Becoming familiar…
The WIP Schedule: A Closer Look
Small business owners in the construction industry are often confused by exactly what the Work-In-Progress (WIP) schedule is for. If you’re not already familiar with its purpose, the benefits it offers, and the potential drawbacks of not paying close attention to it, it can be seem bewildering. However, a close look will illuminate its most…